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EXERCISE 1-15 Traditional and Contribution Format Income Statements The Alpine House, Inc. is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue .. Selling price per pair of skis. Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense .... Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $150,000 $750 $50 $10 $20,000 $20.000 $30,000 $40,000 $100,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? A2 X fx C D E G I J A B 1 Chapter 1 Excel Homework Problem 2 3 Data 4 Selling Price $750 5 Units Sold ? 6 7 Total Sales $150,000 8 Variable costs: 9 Variable selling $50 10 Variable administrative $10 11 Fixed costs: 12 Fixed selling $20,000 13 Fixed administrative $20,000 14 15 Beginning Inventory $30,000 16 Ending Inventory $40,000 17 Merchandise Purchases $100,000 18 19 20 Traditional Format Income Statement 21 Sales 22 Cost of goods sold 23 Gross margin Solution + 1 A1 X fir Chapter 1 Excel Homework Problem D E F G I J K A B 20 Traditional Format Income Statement 21 Sales 22 Cost of goods sold 23 Gross margin 24 Selling and administrative expenses: 25 Selling 26 Administrative 27 Net operating income 28 29 30 Contribution Format Income Statement 31 Sales 32 Variable expenses: 33 Cost of goods sold 34 Variable selling 35 Variable administration 36 Contribution margin 37 Fixed expenses: 38 Fixed selling 39 Fixed administrative 40 Net operating income 41 42 Contribution Per Pair of Skis Solution +